The National Bank of Georgia, at its meeting on May 6, raised the refinancing rate by 0.25 percentage points to 8.25%. The decision is linked to increased inflationary pressure amid external factors, primarily rising energy prices and global logistics issues.

The regulator notes that the escalation of the situation in the Middle East and supply disruptions through the Strait of Hormuz have led to a new inflationary shock. The increase in oil prices has already affected fuel prices domestically, while transportation difficulties raise business costs and increase risks to supply chains.

In April, inflation accelerated to 5.9%, exceeding the target level of 3%. Meanwhile, core inflation remains close to the target at 3.2%, and services inflation reached 3.7%. Despite price pressure, the economy shows resilience: in March, growth was 10.7%, and for the first quarter, it was 9.1%, driven by productive sectors.